Ethereum’s native token, Ether (ETH), has experienced a significant decline in value, losing almost half its worth since Eric Trump, son of former US President Donald Trump, publicly declared it a “great time” to add the leading altcoin to investment portfolios. As of March 31, Ether was trading at approximately $1,820, marking a stark drop of about 40% since Trump’s endorsement.
During this turbulent period, Ether’s market share has also dwindled, decreasing from 10.28% to 8.39%—the lowest level since 2020. This downturn can be attributed to several market headwinds that have emerged following Eric Trump’s tweet, including a significant security breach at prominent cryptocurrency exchange Bybit, which lost roughly $1.5 billion in Ether.
Market Reactions and Economic Influences
Additionally, economic tensions fueled further selloffs across Ethereum and the broader crypto landscape. The escalating tariff war led by President Trump against various nations—including Canada, Mexico, and China—has been a substantial factor dampening investors’ risk appetite. The upcoming 25% tariffs on auto imports, set to take effect on April 3, have compounded these challenges.
Michaël van de Poppe, co-founder of MN Consultancy, has expressed skepticism regarding the potential for an Ether price rebound in the near future, suggesting that market conditions may not favor an upward trajectory until gold prices begin to decline.
Interestingly, amidst this market volatility, World Liberty Finance (WLFI)—a decentralized finance firm connected to the Trump family—strategically transferred 73,783 ETH (~$212.60 million at that time) to Coinbase Prime shortly after Eric Trump’s tweet. Despite WLFI’s assertion that this move was part of routine treasury management, speculation has arisen concerning Eric Trump’s intentions.
Future Indicators for Ethereum Pricing
The technical landscape indicates that Ether could potentially dip below $1,500 in April, down an additional 20% from current levels. The ETH/USD pair has entered a breakdown phase of a bear flag pattern, suggesting further bearish movements in the near term.
Nevertheless, hope remains for Ethereum bulls. A rebound from current support levels around $1,800 could invalidate the bearish sentiment, potentially forming a double-bottom pattern. This reversal could see ETH’s price rebound toward $2,500, representing a 35% increase from current trading levels.
In conclusion, while the recent endorsement from Eric Trump initially stirred interest in Ethereum, subsequent developments have led to significant price declines and market uncertainty. The interplay of economic factors, security breaches, and political decisions continues to shape Ether’s trajectory. Investors are encouraged to conduct thorough research and consider market conditions before making financial decisions.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
